Exemption in respect of Medical Expenses – Individual Taxpayers

One can not plan medical expenses, both in terms of timing and amount and cannot avoid or control such expenses, but the fact that medical expenses can provide tax exemption, gives a sigh of relief to the taxpayer. In order to claim medical expenses, one should know the relevant section of Income Tax Act to claim medical expenses, keep documentary record of medical bills, doctor’s prescription and claim medical expenses on the same financial year in which it is incurred as they cannot be carried forward. Section 10 – Medical Treatment Expenses Reimbursement Section 10 of the Income Tax Act provides medical expenses exemption if your salary package includes medical reimbursement as perquisites. Exemption is available on expenses incurred for you and your family for any diseases except cosmetic treatment and eye glasses. Exemption limit is Rs.15000 per year, supported by adequate documents. Section 80DDB – Medical Treatment Expenses Section 80DDB of the Income Tax Act provides medical expenses exemption on those incurred for you and your dependents for certain diseases. Exemption limit is Rs.40,000 per year and if you or your dependent is a senior citizen, then limit increases to Rs.60,000 per year. You need to submit form 101, issued by a specialist doctor working in government hospital. Section 80DD – Expenses on Physically Disabled Section 80DD of the Income Tax Act provides exemption for expenses on your physically disabled dependent. Exemption is allowed on expenses namely Medical Treatment Expenses and Payment or deposit under an approved scheme of LIC or UTI. Exemption limit is Rs.50,000 per year and if disability is severe the limit increases to Rs.60,000 per year. You need to submit form 101, issued by a specialist doctor working in government hospital. Tax Returns for Financial Year 2010 -11 (March 2011) has started. Request you to please visit Taxmantra.com or mail us Form16/ Salary Certificate and details of other income, at info@taxmantra.com . We would take it from there to file your return of income. Taxmantra.com provides complete online taxation solutions for individuals ( Tax Returns + Tax Support + Tax Planning ) – please see this – Services Offered. Taxmantra.com- Providing Complete Online Tax Solutions for Individuals, Not Just Returns.

4 thoughts on “Exemption in respect of Medical Expenses – Individual Taxpayers”

  1. for Senior Citizen what is Medical premium Exemption & in which section (80d Miximum-15000/-) so what to do

  2. U/s 80D Medical premium exemption limit is Rs. 20,000/- for senior citizen.

    1. Medical Reimbursement is a perquisite and is exempt to a certain limit i.e., maximum upto Rs.15000. Medical Reimbursement is for medical expenses incurred by an employee on day-to-day medical needs like medicines. Only the bills are required to claim it.

      But, mediclaim usually refer to Medical Insurance Premium or Health Insurance Premium. In other words, the premium paid towards policy taken on the health of the self, spouse, parents or dependent children can be claimed as deduction u/s 80D.

      Deduction U/S 80D up to Rs. 15000/- is allowed in case of self and dependent children, an additional deduction of Rs.15000/- is allowed for premium paid towards the medical insurance of parents, that is, a total deduction of Rs.30000/- can be claimed towards medical insurance premium of self, children and parents.

      Further, in case the premium is paid towards any senior citizen (above 60 years), an additional deduction of Rs.5000/- shall be allowed, that is, in case of senior citizens the above limit of 15,000/- shall be upgraded to Rs. 20,000/-.

      Thus, benefits can be availed from both.

      Thanks and Regards,
      Team Taxmantra
      Call Us: +91 923 0033 070
      Email Us: info@taxmantra.com

Leave a Reply

Your email address will not be published.